Ethereum transactions have risen to their highest level since February 1st 2018, topping 940,000 on May 27th.
Ignoring a brief bleep in May last year which was caused due to airdrops, ethereum’s network has not seen more demand since the near peak of eth prices.
Zoomed in, we can see eth transactions have sidewayed for months, with then a brief fall in February due to the increase in blocktimes, so returning back to sideways until April.
In April, transactions see an increase, with that then accelerating in May to now 940,000 from the February low of 380,000.
ETH Transfers Rising
The amount of eth sent on-chain as measured in dollars has a somewhat clearer story.
We can see there a downtrend for much of last year until August when it sideways, with the Feb technicality then leading to a low.
Since then, there has been an uptrend, with G here standing for billion. So eth processed nearly $2 billion worth in a day earlier this month.
What is interesting here is the sideways because it is for so long and it is in dollars.
Eth’s price of course was falling from August to December, yet the amount sent in dollars remained constant.
That suggests there is a certain level of on-chain activity that has no relation to price and is instead for some sort of use case. Maybe remittance, or dapp usage.
That level of activity is at about half a billion a day, with it then increasing as more individuals join the network.
Fees Still Low
While transactions are close to a million a day, fees have remained at just 4 cent for a standard transaction and 8 cent for a fast one.
The network hashrate has recovered a bit, but not quite yet. That’s probably because it used to take about $150 to mine an eth when block rewards were at 3 eth.
Such rewards have been reduced to 2 eth, so the cost to mine has increased with it perhaps not quite yet in profit or maybe just about.
Bitcoin has had a far bigger recovery price wise and has gained 15% over last year’s price in May. In contrast, eth was at about $500 or more last May, so it is still down circa 50%.
Bitcoin’s hashrate therefore has seen a considerable recovery as it looks forward to the halvening in about a year. While eth might have a halvening of sorts this autumn when Proof of Stake goes out.